Operations Management: An Integrated Approach

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The 5th edition of Operations Management continues to incorporate more of a business/qualitative focus with less emphasis on a quantitative presentation to OM. This new edition is focused on offering more problem solving hints and tips as part of the solution to most examples and solved problems throughout the book. New content changes include an increased coverage of sustainability. Each chapter has a new section that features information on how sustainability is impacting the topic of that chapter. There is a new second virtual case on Healthcare and operations management. More coverage of technology and technology examples via operations and supply chain management as well as many new/current examples such as JIT and how the automotive industry/supply chain was disrupted from the Japan earthquake.

Introduction to Operations Management 1

WHAT IS OPERATIONS MANAGEMENT? 2

Links to Practice: The E-tailers 4

DIFFERENCES BETWEEN MANUFACTURING AND SERVICE ORGANIZATIONS 5

Links to Practice: U.S. Postal Service 6

OPERATIONS MANAGEMENT DECISIONS 7

Links to Practice: Texas Instruments Incorporated 9

PLAN OF THIS BOOK 10

HISTORICAL DEVELOPMENT 11

Why OM? 11

Historical Milestones 11

The Industrial Revolution 12

Scientific Management 13

The Human Relations Movement 14

Management Science 14

The Computer Age 15

Just-in-Time 15

Total Quality Management 15

Business Process Reengineering 16

Flexibility 16

Time-Based Competition 16

Supply Chain Management 16

Links to Practice: The Publishing Industry 17

Global Marketplace 18

Sustainability and Green Operations 18

Electronic Commerce 18

Outsourcing and Flattening of the World 19

TODAY?S OM ENVIRONMENT 20

OPERATIONS MANAGEMENT IN PRACTICE 21

WITHIN OM: HOW IT ALL FITS TOGETHER 21

OM ACROSS THE ORGANIZATION 22

THE SUPPLY CHAIN LINK 24

THE SUSTAINABILITY LINK 24

Chapter Highlights 25

Key Terms 25

Discussion Questions 25

CASE: HIGHTONE ELECTRONICS, INC. 26

CASE: CREATURE CARE ANIMAL CLINIC (A) 26

INTERACTIVE CASE: VIRTUAL COMPANY 27

INTERNET CHALLENGE 28

ON LINE RESOURCES 28

Selected Bibliography 28

C H A P T E R 2 Operations Strategy and Competitiveness 29

THE ROLE OF OPERATIONS STRATEGY 31

The Importance of Operations Strategy 31

DEVELOPING A BUSINESS STRATEGY 32

Mission 32

Environmental Scanning 33

Core Competencies 35

Putting It Together 36

Links to Practice: Dell Computer Corporation 36

DEVELOPING AN OPERATIONS STRATEGY 37

Competitive Priorities 37

Links to Practice: Southwest Airlines Company 38

Links to Practice: FedEx Corporation 40

Th e Need for Trade-Off s 40

Order Winners and Qualifi ers 41

Translating Competitive Priorities into Production Requirements 42

STRATEGIC ROLE OF TECHNOLOGY 43

Types of Technologies 43

Technology as a Tool for Competitive Advantage 44

PRODUCTIVITY 44

Measuring Productivity 44

Interpreting Productivity Measures 47

Productivity and Competitiveness 47

Productivity and the Service Sector 48

OPERATIONS STRATEGY WITHIN OM: HOW IT ALL FITS TOGETHER 48

OPERATIONS STRATEGY ACROSS THE ORGANIZATION 49

THE SUPPLY CHAIN LINK 49

THE SUSTAINABILITY LINK 50

Chapter Highlights 50

Key Terms 51

Formula Review 51

Solved Problems 51

Discussion Questions 52

Problems 52

CASE: PRIME BANK OF MASSACHUSETTS 53

CASE: BOSEMAN OIL AND PETROLEUM (BOP) 54

INTERACTIVE CASE: VIRTUAL COMPANY 54

INTERNET CHALLENGE 55

ON LINE RESOURCES 55

Selected Bibliography 56

C H A P T E R 3 Product Design and Process Selection 57

PRODUCT DESIGN 59

Design of Services versus Goods 59

THE PRODUCT DESIGN PROCESS 60

Idea Development 60

Links to Practice: IBM Corporation 61

Product Screening 62

Preliminary Design and Testing 64

Final Design 64

FACTORS IMPACTING PRODUCT DESIGN 65

Design for Manufacture 65

Product Life Cycle 66

Concurrent Engineering 67

Remanufacturing 68

PROCESS SELECTION 68

Types of Processes 68

DESIGNING PROCESSES 72

PROCESS PERFORMANCE METRICS 74

LINKING PRODUCT DESIGN AND PROCESS SELECTION 77

Product Design Decisions 78

Links to Practice: The Babcock & Wilcox Company 78

Competitive Priorities 79

Facility Layout 79

Product and Service Strategy 81

Degree of Vertical Integration 81

TECHNOLOGY DECISIONS 82

Information Technology 82

Links to Practice: Using GPS Technology in Product Advertising 83

Automation 83

Links to Practice: Performing Robotic Surgery 85

e-Manufacturing 86

DESIGNING SERVICES 87

How Are Services Diff erent from Manufacturing? 87

How Are Services Classifi ed? 88

The Service Package 89

Differing Service Designs 90

PRODUCT DESIGN AND PROCESS SELECTION WITHIN OM: HOW IT ALL FITS TOGETHER 91